JOLTS Job Openings, U.S. Factory Orders, Alphabet Earnings

The EUR/USD pair dropped sharply following renewed tariff threats from U.S. President Donald Trump, sending ripples through global markets. However, the sell-off moderated after the Trump administration granted a 30-day reprieve on impending tariffs for Canada and Mexico. While the possibility of U.S. tariffs targeting the European Union remains on the table, details from the White House remain scarce.

Markets experienced a volatile start to the trading week, with risk appetite initially plunging as the U.S. appeared poised to impose broad tariffs on key allies. A last-minute delay in implementing these measures helped ease bearish sentiment, allowing investor confidence to rebound to previous levels.

Gold prices surged to a record high on Monday as the U.S. announced scheduled tariffs on Canada, Mexico, and China, driving investors toward the metal’s safe-haven appeal.

Despite a slight improvement in market sentiment, gold continues to hold its gains. Tariff developments have remained a key market driver since U.S. President Donald Trump took office.

On the economic front, data from the Institute for Supply Management (ISM) indicated an improvement in U.S. manufacturing activity. Investors will also be closely watching upcoming economic releases, including January’s U.S. Nonfarm Payrolls (NFP) report, alongside commentary from Federal Reserve (Fed) officials, which could further influence market dynamics.

Oil prices saw volatile trading on Monday, briefly rising before closing at a one-month low as markets reacted to U.S. President Donald Trump’s planned tariffs on Canada, Mexico, and China. The expiration of a higher-priced contract also contributed to price fluctuations.

Concerns over potential disruptions to U.S. crude imports from two major suppliers—Canada and Mexico—initially pushed prices over $1 per barrel higher. However, Trump’s decision to delay tariffs on Mexico for one month, following an agreement to bolster border security efforts, helped ease some market anxiety.

In the global oil market, OPEC+—which includes the Organization of the Petroleum Exporting Countries and allies like Russia—announced it will maintain its gradual production increase from April.

Major U.S. stock indexes closed lower on Monday, though they managed to recover some losses after President Donald Trump delayed tariffs on Mexico. Earlier in the session, his decision to impose levies on three major trade partners had sparked a rush toward safe-haven assets, intensifying market volatility.

Trump announced a one-month pause on tariffs targeting Mexico after the country agreed to deploy 10,000 National Guard members to reinforce its northern border and curb the flow of illegal drugs, particularly fentanyl.

Economic data provided a mixed backdrop—U.S. manufacturing expanded for the first time in over two years in January, according to the Institute for Supply Management. However, analysts warn that sustained tariffs could push inflation higher and disrupt supply chains.